Infosys Co-Founder Resigns

Infosys Co-Founder Resigns, to Join Indian Government

Mr. Nandan Nilekani, Co-Chairman and Co-founder Infosys Technologies Ltd. (INFY - Analyst Report), India's second-largest technology company by sales, resigned from the company. He will be heading the Unique Identification Authority of India, joining the government at cabinet level after leaving his Infosys post July 9.

In an interview with CNBC-TV18, Nilekani said that while the decision to quit Infosys was a difficult one, it was an offer he couldn't refuse. He also stated, "The cause is so big and in the interest of the nation." The ID project, he added, is crucial for not just security but also for ensuring financial inclusion for all Indian citizens.

While this is a great move by the Indian Government to get Mr. Neilkeni as a cabinet minister, it will be difficult for Infosys to find a suitable replacement for him. In an uncertain economic environment, where IT spending by many companies has come to a standstill and the worldwide growth rate in IT spending is expected to slow down to 0.5% for 2009 (as forecasted by research firm IDC), losing a mentor and great visionary like Mr. Neilkeni might negatively impact the administrative proceedings of the company.

It will be interesting to see who is selected as a suitable replacement, and how that person will take the company ahead.